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Choose Chat Channels Wisely to Optimize Potential Returns

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Effective cross-generational communication with customers requires an excellent omnichannel strategy and chat is fast becoming the cornerstone for brands around the globe. But for many Nigerian organizations, chat channels still carry a degree of security hesitancy from consumers that will need to be overcome if they hope to reap the full rewards of chat commerce.

In a global multi-industry survey of 405 companies, Aberdeen Research in partnership with Clickatell, found that at least two-thirds of firms use chat and that those that use chat in commerce achieve superior financial results while delivering a better customer experience. This included a 75% improvement in annual revenue growth and a 48% bump in customer retention rates.

The chat opportunity for Nigerian organizations is also significant. WhatsApp is the most popular social media platform in Nigeria, with 93% of internet users aged 16 to 64 years using it. These numbers prove that chat is one of the most effective ways for businesses to reach the local population – a fact that has already been acted on by some forward thinking local banks which have embraced Chat Commerce, including ​​United Bank for Africa (UBA), Guaranty Trust Bank (GTBank), First Bank of Nigeria (FBN), Fidelity Bank and Sterling Bank.

While there is a very clear business reason to use the more popular chat channels to communicate with customers, business leaders must also be aware that users may harbour some mistrust when it comes to sharing personal data over digital channels. A significant 64% of consumers recently surveyed for Clickatell’s Chat Commerce Trends Report said they’re “not sure” about security and confidentiality of chat apps.

“We are very comfortable exchanging information with our friends and family over chat, but for many customers, dealing with a bank or mobile network in this way is still a new concept. Businesses may need to spend some time educating customers around the safety of these channels,” explains Samson Isa, Director West Africa at Clickatell. “We need to repeat the message that buying a product, topping up on airtime, or buying electricity over WhatsApp is just as safe as shopping via a regular ecommerce store, or buying airtime or electricity tokens via your banking app or even at your neighbourhood’s store,” he says.

Not all channels are created equal

Isa says it is also important for businesses to choose the channels they use with care as each has its unique strengths and weaknesses.

So while Facebook Messenger has extraordinary reach, rich media capabilities and deep collaboration with its social cousin Facebook, it currently lacks end-to-end data encryption. 

However, WhatsApp’s high level of security with end-to-end encryption makes it the preferred channel when it comes to sharing sensitive information.

“When it comes to WhatsApp, only the customer and the merchant can see what is in the communication. Customers are literally holding the encryption key in their hand. Now, technically encryption can be broken, but it’s incredibly expensive and just not worth it. It’s easier to hack your customers’ email to get their details, than it is to hack their WhatsApp messages,” Isa explains.

Isa says that financial services provide the perfect use case as to how to choose the correct channel based on the purpose of the communication.

In its Chat Commerce Trends Report, Clickatell identified the top three banking services consumers wanted via chat were customer support, account balances and bill payment.

The report notes that depending on security levels and other features, different channels are better for certain uses.

WhatsApp, Google Business Messages, and Apple Business Chat are best suited to customer care, account management and banking “lobby” experiences, such as scheduling appointments.

Facebook Messenger, meanwhile, was better suited to immersive user engagement and conversations, like answering customer questions that don’t require sensitive personal information.

SMS remained the most relevant for time critical notifications. However, Isa points out that SMS is most popular for outbound use cases such as appointment reminders, shipping notifications, flight confirmations, fraud alerts, or marketing campaigns but accounts for less than 2% of inbound business interactions.

Clickatell also advises merchants to consider obfuscating personal information in communications as an additional layer of customer protection.

By showing only the last few digits of an account or card number, for example, even if the message were to be intercepted, fraudsters would never have access to all the information. What’s more, this would add to the level of customer comfort, encouraging the acceptance and use of the chat channels.

“As businesses begin to embrace Chat Commerce and develop their strategies, they will have to strike a balance between robust security, usability and adoption. The selection of a messaging app that is best suited for their needs will depend on many factors from both a business and user perspective. Security and privacy must play a key role in the decision, especially when businesses exchange sensitive and personal information,” Isa advises.

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Starlink Pulls Plug on Ghana, South Africa, and Others

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Starlink, the satellite internet service operated by SpaceX, has announced the cessation of services in countries including Ghana and South Africa.

This decision comes as a significant blow to users who have come to rely on Starlink for their internet connectivity needs.

The decision, set to take effect by the end of April 2024, will disconnect all individuals and businesses in unauthorized locations across Africa, including Ghana, South Africa, Botswana, and Zimbabwe.

While subscribers in authorized countries such as Nigeria, Mozambique, Mauritius, and others can continue to use their kits without interruption, those in affected regions face imminent loss of access.

One of the reasons cited by Starlink for the discontinuation is the violation of its terms and conditions.

The company explained that its regional and global roaming plans were intended for temporary use by travelers and those in transit, not for permanent use in unauthorized areas. Users found in breach of these conditions face the termination of their service.

Furthermore, Starlink’s recent email to subscribers outlined stringent measures to enforce compliance.

Subscribers who use the roaming plan for more than two months outside authorized locations must either return home or update their account country to the current one. Failure to do so will result in limited service access.

The decision to discontinue services in certain countries raises questions about the future of internet connectivity in these regions.

Also, concerns have been raised about Starlink’s ability to enforce the new rules effectively. Reports indicate that the company has previously failed to enforce similar conditions for over a year, raising doubts about the efficacy of the current measures.

Starlink’s decision to pull the plug on Ghana, South Africa, and other nations underscores the complexities of providing satellite internet services in diverse regulatory environments.

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Nigeria’s Broadband Penetration Stalls at 42.53% Amid Connectivity Challenges

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Nigeria’s broadband penetration has stalled at 42.53% as of January, according to the latest report.

Subscriptions currently stand at 92.19 million, indicating a significant gap in connectivity, particularly in rural areas.

The Nigerian National Broadband Plan 2020-2025 aims to increase broadband penetration to 70% by 2025, with the ultimate goal of achieving 96% mobile broadband coverage by 2030.

However, this ambitious target requires substantial investment—approximately $461 million, according to a recent report by the Global System for Mobile Communications Association (GSMA).

While the country’s major telecommunications companies, such as MTN Nigeria and Airtel Africa, have invested heavily in expanding their network infrastructure, much of this development has been concentrated in urban areas. Rural and underserved regions face a significant coverage gap, exacerbating the digital divide.

Despite these challenges, Nigeria has made progress in improving its broadband infrastructure. Since 2012, the mobile broadband coverage gap across Africa has decreased from 56% to 13% in 2022, due to significant investments in network capacity and new technologies.

Nonetheless, millions of Nigerians, particularly those in rural regions, remain without access to essential telecom services.

To address this issue, Nigeria’s government established the Universal Service Provision Fund (USPF) in 2006, aimed at bridging the connectivity gap and expanding broadband access to unserved and underserved areas.

The fund provides resources for deploying telecommunications infrastructure in economically unviable regions.

The success of these initiatives, along with increased investments in broadband infrastructure and policies to incentivize internet expansion in remote areas, will be crucial in closing the connectivity gap and improving digital access for all Nigerians.

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iPhone Shipments Drop Amid Resurgence of Android Rivals

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Apple iPhone 14

Apple Inc. reported a significant drop in iPhone shipments during the March quarter, reflecting a downturn in sales across China amid the resurgence of competition from Android-powered rivals.

According to market tracker IDC, the tech giant shipped 50.1 million iPhones in the first three months of the year, a 9.6% year-on-year decline that fell short of the average analyst estimate of 51.7 million.

The steep decrease in iPhone sales marks Apple’s most significant quarterly dip since 2022, when Covid-19 lockdowns disrupted supply chains.

This time, the Cupertino-based company faces challenges from resurgent competitors such as Huawei Technologies Co. and Xiaomi Corp.

These firms have rebounded strongly in recent quarters, and their innovative product lines have begun to reclaim market share from Apple in China.

Samsung Electronics Co. regained its position as the top smartphone supplier globally, while Apple ranked second. Xiaomi closed the gap on Apple, shipping 40.8 million units, an impressive 33.8% increase year-on-year.

Transsion Holdings, another key player in the budget smartphone segment, nearly doubled its shipments, showcasing the competitive environment Apple faces.

Nabila Popal, research director at IDC, highlighted the broader shift in the smartphone market, which has recovered from the supply chain disruptions and challenges of recent years.

“While Apple has demonstrated resilience and growth in recent years, maintaining its pace and share in the market may prove challenging as Android manufacturers make strides,” Popal commented.

Apple has a strong brand and loyal customer base, yet its market position may be tested further by the aggressive pricing and innovative products offered by Chinese rivals.

The company’s efforts to sustain its premium pricing strategy may also be challenged as more customers consider switching to Android alternatives.

As the tech industry looks ahead to the rest of the year, Apple’s upcoming earnings report and strategic moves to address this competitive pressure will be closely watched by investors and industry observers alike.

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